15:29:14 EST Thu 30 Nov 2023
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Ascot Resources Ltd
Symbol AOT
Shares Issued 555,909,153
Close 2023-09-18 C$ 0.46
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Ascot Resources acquires assay lab from Seacan Lab

2023-09-19 10:04 ET - News Release

Mr. Derek White reports


Ascot Resources Ltd. has completed a transaction with Seacan Labs Corp. to acquire its full-service assay laboratory facility in Stewart, B.C., located 25 kilometres from the company's Premier gold project (PGP). The assay lab will be used to perform the testing required by Ascot for mineral exploration, mining operation and environmental monitoring.

Derek White, president and chief executive officer, commented: "The acquisition of this fully functioning assay laboratory facility in Stewart is a key component of preparing Ascot for production at the Premier gold mine. This facility will benefit the project's full mining life cycle through exploration, production and environmental monitoring."

Seacan purchased the assay lab and installed it at the World Port facility in Stewart, B.C., in early 2022. Ascot had entered into a service agreement with Seacan with respect to the company's testing needs for PGP, and a portion of Ascot's 2022 exploration drill assays and environmental testing was completed by Seacan. However, in order to further derisk the project and minimize counterparty reliance, Ascot decided to purchase the assay lab outright. The company is now in the process of planning for the staffing and operation of the assay lab in advance of targeted production start in the first quarter of 2024. The assay lab's location is strategic given its proximity to the project and will provide local career opportunities in the town of Stewart. There remains the prospect of monetizing the assay lab via sale to a more established laboratory and testing company in the future, and any such opportunities will be evaluated in due course.

Assay lab description

The assay lab has a daily capacity of approximately 250 samples. This includes crushing and pulverizing, fire assay gold analysis, and inductively coupled plasma optical emission spectroscopy multielement analysis. The assay lab's capacity of 250 samples per day will cover the needs of PGP and may offer additional capacity that could be made available to third parties in the area for a fee.

Transaction terms

Total consideration for the transaction is $3,548,587, consisting of $500,000 in cash already paid at closing and 5,692,972 Ascot common shares (valued at the five-day volume-weighted average price of Ascot common shares immediately prior to June 28, 2023, being the date of the definitive agreement in respect of the acquisition, of 53.55 cents per share). The shares will be issued to Seacan according to the following schedule: 36.3 per cent or 2,068,837 shares on Jan. 18, 2024; 27.3 per cent or 1,555,298 shares on May 18, 2024; and the remaining 36.3 per cent or 2,068,837 shares on Sept. 18, 2024. A warranty exists for 12 months postclosing whereby if any damaged or defective equipment is identified, subject to certain exceptions, a maximum of $200,000 may be recuperated by the company withholding an amount of yet-to-be-issued common shares having an equivalent value, based on the market price of the common shares at such time (as defined under securities legislation).

Qualified person

Lawrence Tsang, PGeo, the company's exploration manager, provides the field management for the PGP exploration program. John Kiernan, PEng, chief operating officer of the company, is the company's qualified person (QP) as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this news release.

About Ascot Resources Ltd.

Ascot is a Canadian junior exploration and development company focused on restarting the past-producing Premier gold mine, located on Nisga'a Nation treaty lands, in British Columbia's prolific Golden Triangle. Ascot shares trade on the Toronto Stock Exchange under the ticker AOT. Concurrent with progressing the development of Premier, the company continues to successfully explore its properties for additional high-grade underground resources. Ascot is committed to the safe and responsible development of Premier in collaboration with Nisga'a Nation as outlined in the benefits agreement.

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